AVBHMEDIUM SIGNALFINANCIAL10-Q

AVBH's investment securities portfolio shows significant changes in composition and unrealized losses, while operating cash flow doubled during the quarter.

The substantial restructuring of the available-for-sale securities portfolio, particularly the dramatic reduction in residential mortgage-backed securities holdings from $345.9M to $154.6M, suggests active portfolio management in response to market conditions. The shift from $45.2M in net unrealized losses to just $492K indicates improved mark-to-market performance on the investment portfolio.

Comparing 2025-11-12 vs 2025-09-18View on EDGAR →
FINANCIAL ANALYSIS

Operating cash flow roughly doubled to $8.2M, demonstrating strengthened operational performance during the quarter. Capital expenditures declined modestly from $23K to $9K, reflecting conservative spending. The most notable development is the significant rebalancing of the securities portfolio, with residential mortgage-backed securities being substantially reduced while the overall unrealized loss position improved dramatically from the prior quarter.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+93.7%
$4.3M$8.2M

Operating cash flow surged 93.7% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
-60.9%
$23K$9K

Capex reduced 60.9% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

LANGUAGE CHANGES
NEW — 2025-11-12
PRIOR — 2025-09-18
ADDED
Use of Estimates The preparation of these consolidated financial statements in conformity with U.S.
generally accepted accounting principles requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions.
These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.
government agencies $ 10,477 $ $ ( 23 ) $ 10,454 Commercial mortgage-backed securities 4,478 ( 31 ) 4,447 Residential mortgage-backed securities 154,615 88 ( 687 ) 154,016 U.S.
states and political subdivisions 4,708 66 ( 103 ) 4,671 Total available-for-sale securities $ 174,278 $ 154 $ ( 844 ) $ 173,588 December 31, 2024 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities U.S.
states and political subdivisions 4,703 57 ( 66 ) 4,694 Total available-for-sale securities $ 369,155 $ 57 $ ( 72,656 ) $ 296,556 Net unrealized losses on available-for-sale investment securities totaling ($ 492,000 ) were recorded as accumulated other comprehensive loss, net of tax of $ 198,000 , within shareholders' equity at September 30, 2025.
During the three and nine months ended September 30, 2025, the Company sold $ 274.7 million in available-for-sale securities and recognized a loss of $ 62.4 million on the sale of the securities.
The Company then purchased $ 163.2 million in available-for-sale securities with an average purchase yield of 4.54 % and a duration of 2.8 years.
In comparison, during the three and nine months ended September 30, 2024, there were no sales or calls of investment securities and no gains realized or losses recognized.
There were no transfers between investment categories during the three and nine months ended September 30, 2025 or September 30, 2024.
REMOVED
Use of Estimates The preparation of these consolidated financial statements requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions.
agencies $ 526 $ $ ( 26 ) $ 500 Commercial mortgage-backed securities 5,075 4 ( 229 ) 4,850 Residential mortgage-backed securities 345,909 ( 63,025 ) 282,884 U.S.
states and political subdivisions 4,706 31 ( 163 ) 4,574 Total available-for-sale securities $ 356,216 $ 35 $ ( 63,443 ) $ 292,808 December 31, 2024 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities U.S.
states and political subdivisions 4,703 57 ( 66 ) 4,694 Total available-for-sale securities $ 369,155 $ 57 $ ( 72,656 ) $ 296,556 Net unrealized losses on available-for-sale investment securities totaling $ 45.2 million were recorded as accumulated other comprehensive income, net of tax of $ 18.2 million, within shareholders' equity at June 30, 2025.
There were no sales or calls of investment securities during the three and six months ended June 30, 2025 or June 30, 2024.
There were no transfers between investment categories during the three and six months ended June 30, 2025 or June 30, 2024.
agencies $ $ $ 500 $ ( 26 ) $ 500 $ ( 26 ) Commercial mortgage-backed securities 2,919 ( 38 ) 1,191 ( 191 ) 4,110 ( 229 ) Residential mortgage-backed securities 2,479 ( 12 ) 280,405 ( 63,013 ) 282,884 ( 63,025 ) U.S.
states and political subdivisions 3,548 ( 163 ) 3,548 ( 163 ) Total available-for-sale $ 8,946 $ ( 213 ) $ 282,096 $ ( 63,230 ) $ 291,042 $ ( 63,443 ) Less than 12 Months 12 Months or More Total December 31, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S.
Available-for-sale Amortized Cost Fair Value Due in one year or less $ $ Due after one year through five years Due after five years through 10 years 526 500 Due after 10 years 4,706 4,574 5,232 5,074 Investment securities not due at a single maturity date: mortgage-backed securities 350,984 287,734 $ 356,216 $ 292,808 10 Investment securities with fair values of $ 23.7 million and $ 15.5 million were pledged at June 30, 2025 and December 31, 2024, respectively, toward certain letters of credit.
The Bank has pledged a total of $ 963.9 million and $ 897.5 million of loans for borrowing capacity of $ 844.7 million and $ 786.5 million at June 30, 2025 and December 31, 2024, respectively.
MORE FINANCIAL SIGNALS
CRMHIGHSalesforce significantly increased debt by 71% to $14.4B while simultaneously ac...
2026-03-02
UNHHIGHUNH's operating income plummeted 41% despite 12% revenue growth, indicating seve...
2026-03-02
PFEHIGHPfizer achieved a dramatic 87.3% reduction in total debt from $31.4B to $4.0B, r...
2026-02-26
GILDHIGHGILD dramatically increased R&D spending by 81.5% to $9.1B while introducing new...
2026-02-24
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →